When receiving items, it is important to record the quantity of items received using the correct unit of measure. Recall from the Establishing Item Information section that a stock-keeping unit (SKU) is the smallest unit of measure applied to an item when it is issued from or returned to a warehouse. The unit of purchase (UOP), on the other hand, is the unit of measure used by the buyer to order an item. Often, the unit of purchase (UOP) used on a purchase order may not be the stock-keeping unit (SKU) assigned to the item ordered by the NCAS. Therefore, when receiving an item, close attention must be paid to the unit of measure used. If the UOP and the SKU are different, you have two options during receiving:
As long as you match the quantity received with the appropriate unit of measure, the NCAS will update all item balances accordingly.
If, however, converting from a UOP to an SKU results in a fractional quantity, the unit of measure that produces a whole number must be retained. The NCAS will not allow fractions or decimals to be entered in the QUANTITY field on any screen.
Matching the quantity received to the correct unit of measure ensures that account balances and item balances have been accurately updated in the NCAS. Recall that when items are received in the Purchasing module, item balances are automatically updated in the Inventory module. Therefore, the correct quantities must be recorded to ensure that system-maintained item balances reflect the actual quantities available.
For example, when receiving 48 pencils, suppose you entered four as the quantity of pencils received and each as the unit of measure. The NCAS would add four pencils to your inventory supply, not 48. This, in turn, could create confusion regarding when to reorder. If the order point for the pencils is 20, the NCAS will immediately notify you that it is time to reorder pencils. In other words, the NCAS thinks you only have four pencils when the actual quantity available is 48. Thus, it is extremely important for inventory purposes that item quantities and units of measure are recorded correctly. You should always physically count the quantity of inventory received to be sure that it is recorded correctly.